S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2211--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 12, 2017
                                ___________
 
 Introduced  by  Sens. LAVALLE, BOYLE, MARCHIONE, RANZENHOFER, RITCHIE --
   read twice and ordered printed, and when printed to  be  committed  to
   the Committee on Finance -- recommitted to the Committee on Finance in
   accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 AN  ACT  to amend the state finance law, in relation to establishing the
   state university  of  New  York  upstate  medical  hospital  operating
   account,  the  state university of New York downstate medical hospital
   operating account and the state university of  New  York  Stony  Brook
   medical  hospital  operating  account;  to amend the education law, in
   relation to apportionment to  the  state  university;  and  to  repeal
   subdivision 8-a of section 355 of the education law relating thereto
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The state finance  law  is  amended  by  adding  three  new
 sections 99-bb, 99-cc and 99-dd to read as follows:
   § 99-BB. STATE UNIVERSITY OF NEW YORK UPSTATE MEDICAL HOSPITAL OPERAT-
 ING  ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE
 STATE COMPTROLLER AND  THE  COMMISSIONER  OF  TAXATION  AND  FINANCE  AN
 ACCOUNT TO BE KNOWN AS THE "STATE UNIVERSITY OF NEW YORK UPSTATE MEDICAL
 HOSPITAL OPERATING ACCOUNT".
   2.  SUCH  ACCOUNT  SHALL  CONSIST  OF (A) ANY MONIES RECEIVED BY STATE
 UNIVERSITY HEALTH CARE FACILITIES FROM FEES, CHARGES  AND  REIMBURSEMENT
 FROM  ALL OTHER SOURCES, AND (B) ANY FUNDING FROM THE STATE GENERAL FUND
 PROVIDED TO THE STATE UNIVERSITY HEALTH CARE FACILITIES PURSUANT  TO  AN
 ANNUAL TRANSFER SO DESIGNATED AS BEING ASSOCIATED WITH THE STATE UNIVER-
 SITY  HEALTH  CARE FACILITY AT SYRACUSE.  NOTWITHSTANDING THE PROVISIONS
 OF ANY LAW, RULE OR REGULATION TO THE CONTRARY, A PORTION OF SUCH MONIES
 CREDITED MAY BE TRANSFERRED TO A STATE UNIVERSITY ACCOUNT  AS  REQUESTED
 BY  THE  STATE  UNIVERSITY  CHANCELLOR OR HIS OR HER DESIGNEE. MONIES TO
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07867-02-8

 S. 2211--A                          2
 
 ESTABLISH RESERVES FOR LONG-TERM EXPENSES  OF  STATE  UNIVERSITY  HEALTH
 CARE FACILITIES AND TO FULFILL OBLIGATIONS REQUIRED FOR ANY CONTRACT FOR
 HEALTH  CARE  SERVICES  AUTHORIZED  PURSUANT  TO  SUBDIVISION SIXTEEN OF
 SECTION  THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW MAY BE DESIGNATED
 BY THE STATE UNIVERSITY HEALTH CARE FACILITY AT SYRACUSE  AS  A  RESERVE
 AND  TRANSFERRED  TO A SEPARATE CONTRACTUAL RESERVE ACCOUNT. THE AMOUNTS
 IN SUCH ACCOUNTS SHALL BE AVAILABLE FOR USE IN ACCORDANCE WITH PARAGRAPH
 B OF SUBDIVISION FOUR AND SUBDIVISION EIGHT  OF  SECTION  THREE  HUNDRED
 FIFTY-FIVE  OF THE EDUCATION LAW. MONIES SHALL ONLY BE EXPENDED FROM THE
 STATE UNIVERSITY OF NEW YORK UPSTATE MEDICAL HOSPITAL OPERATING  ACCOUNT
 AND  THE CONTRACTUAL RESERVE ACCOUNT PURSUANT TO APPROPRIATION. NOTWITH-
 STANDING ANY OTHER PROVISION OF THIS CHAPTER, THE EDUCATION LAW  OR  ANY
 OTHER LAW TO THE CONTRARY, SUCH APPROPRIATION SHALL REMAIN IN FULL FORCE
 AND  EFFECT  FOR  TWO YEARS FROM THE EFFECTIVE DATE OF THE APPROPRIATION
 ACT MAKING SUCH APPROPRIATION. MONIES SO TRANSFERRED MAY BE RETURNED  TO
 THE  STATE  UNIVERSITY  OF  NEW  YORK UPSTATE MEDICAL HOSPITAL OPERATING
 ACCOUNT; PROVIDED, HOWEVER,  THAT  FUNDS  IN  SUCH  CONTRACTUAL  RESERVE
 ACCOUNT  MUST  BE  SUFFICIENT  TO  MEET  THE  OBLIGATIONS  OF  ALL  SUCH
 CONTRACTS.
   3. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH C OF  SUBDIVISION  FOUR
 OF  SECTION  THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW, OR ANY OTHER
 LAW, RULE OR REGULATION TO THE CONTRARY, AND EXCEPT AS OUTLINED IN  THIS
 SECTION,  SUCH  FUNDS  CONTAINED WITHIN THE STATE UNIVERSITY OF NEW YORK
 UPSTATE MEDICAL HOSPITAL OPERATING ACCOUNT SHALL BE FOR  THE  OPERATIONS
 OF  THE  STATE UNIVERSITY HEALTH CARE FACILITY AT SYRACUSE ALONE AND MAY
 NOT BE SUPPLEMENTED BY MONIES CONTAINED WITHIN ANY OTHER STATE UNIVERSI-
 TY ACCOUNT.
   § 99-CC. STATE UNIVERSITY OF NEW YORK DOWNSTATE MEDICAL HOSPITAL OPER-
 ATING ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN THE  JOINT  CUSTODY  OF
 THE  STATE  COMPTROLLER  AND THE COMMISSIONER OF TAXATION AND FINANCE AN
 ACCOUNT TO BE KNOWN AS THE  "STATE  UNIVERSITY  OF  NEW  YORK  DOWNSTATE
 MEDICAL HOSPITAL OPERATING ACCOUNT".
   2.    SUCH  ACCOUNT  SHALL CONSIST OF (A) ANY MONIES RECEIVED BY STATE
 UNIVERSITY HEALTH CARE FACILITIES FROM FEES, CHARGES  AND  REIMBURSEMENT
 FROM  ALL OTHER SOURCES, AND (B) ANY FUNDING FROM THE STATE GENERAL FUND
 PROVIDED TO THE STATE UNIVERSITY HEALTH CARE FACILITIES PURSUANT  TO  AN
 ANNUAL TRANSFER SO DESIGNATED AS BEING ASSOCIATED WITH THE STATE UNIVER-
 SITY HEALTH CARE FACILITY AT BROOKLYN.  NOTWITHSTANDING ANY LAW, RULE OR
 REGULATION  TO  THE  CONTRARY,  A PORTION OF SUCH MONIES CREDITED MAY BE
 TRANSFERRED TO A STATE UNIVERSITY ACCOUNT  AS  REQUESTED  BY  THE  STATE
 UNIVERSITY  CHANCELLOR  OR  HIS  OR  HER  DESIGNEE.  MONIES TO ESTABLISH
 RESERVES FOR LONG-TERM EXPENSES OF STATE UNIVERSITY HEALTH CARE  FACILI-
 TIES  AND  TO  FULFILL  OBLIGATIONS REQUIRED FOR ANY CONTRACT FOR HEALTH
 CARE SERVICES AUTHORIZED PURSUANT  TO  SUBDIVISION  SIXTEEN  OF  SECTION
 THREE  HUNDRED  FIFTY-FIVE OF THE EDUCATION LAW MAY BE DESIGNATED BY THE
 STATE UNIVERSITY HEALTH CARE FACILITY  AT  BROOKLYN  AS  A  RESERVE  AND
 TRANSFERRED  TO  A  SEPARATE CONTRACTUAL RESERVE ACCOUNT. THE AMOUNTS IN
 SUCH ACCOUNTS SHALL BE AVAILABLE FOR USE IN ACCORDANCE WITH PARAGRAPH  B
 OF  SUBDIVISION  FOUR  AND  SUBDIVISION  EIGHT  OF SECTION THREE HUNDRED
 FIFTY-FIVE OF THE EDUCATION LAW.  MONIES SHALL ONLY BE EXPENDED FROM THE
 STATE UNIVERSITY  OF  NEW  YORK  DOWNSTATE  MEDICAL  HOSPITAL  OPERATING
 ACCOUNT  AND  THE CONTRACTUAL RESERVE ACCOUNT PURSUANT TO APPROPRIATION.
 NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE  EDUCATION  LAW
 OR  ANY  OTHER  LAW  TO THE CONTRARY, SUCH APPROPRIATION SHALL REMAIN IN
 FULL FORCE AND EFFECT FOR TWO YEARS  FROM  THE  EFFECTIVE  DATE  OF  THE
 APPROPRIATION  ACT MAKING SUCH APPROPRIATION.  MONIES SO TRANSFERRED MAY

 S. 2211--A                          3
 
 BE RETURNED TO THE STATE UNIVERSITY OF NEW YORK DOWNSTATE MEDICAL HOSPI-
 TAL OPERATING ACCOUNT; PROVIDED, HOWEVER, THAT FUNDS IN SUCH CONTRACTUAL
 RESERVE ACCOUNT MUST BE SUFFICIENT TO MEET THE OBLIGATIONS OF  ALL  SUCH
 CONTRACTS.
   3.  NOTWITHSTANDING  THE PROVISIONS OF PARAGRAPH C OF SUBDIVISION FOUR
 OF SECTION THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW,  OR  ANY  LAW,
 RULE  OR  REGULATION  TO  THE  CONTRARY,  AND EXCEPT AS OUTLINED IN THIS
 SECTION, SUCH FUNDS CONTAINED WITHIN THE STATE UNIVERSITY  OF  NEW  YORK
 DOWNSTATE MEDICAL HOSPITAL OPERATING ACCOUNT SHALL BE FOR THE OPERATIONS
 OF  THE  STATE UNIVERSITY HEALTH CARE FACILITY AT BROOKLYN ALONE AND MAY
 NOT BE SUPPLEMENTED BY MONIES CONTAINED WITHIN ANY OTHER STATE UNIVERSI-
 TY ACCOUNT.
   § 99-DD. STATE UNIVERSITY OF NEW YORK  STONY  BROOK  MEDICAL  HOSPITAL
 OPERATING  ACCOUNT.  1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY
 OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE AN
 ACCOUNT TO BE KNOWN AS THE "STATE UNIVERSITY OF  NEW  YORK  STONY  BROOK
 MEDICAL HOSPITAL OPERATING ACCOUNT".
   2.    SUCH  ACCOUNT  SHALL CONSIST OF (A) ANY MONIES RECEIVED BY STATE
 UNIVERSITY HEALTH CARE FACILITIES FROM FEES, CHARGES  AND  REIMBURSEMENT
 FROM  ALL OTHER SOURCES, AND (B) ANY FUNDING FROM THE STATE GENERAL FUND
 PROVIDED TO THE STATE UNIVERSITY HEALTH CARE FACILITIES PURSUANT  TO  AN
 ANNUAL TRANSFER SO DESIGNATED AS BEING ASSOCIATED WITH THE STATE UNIVER-
 SITY   HEALTH  CARE  FACILITY  AT  STONY  BROOK.    NOTWITHSTANDING  THE
 PROVISIONS OF ANY LAW, RULE OR REGULATION TO THE CONTRARY, A PORTION  OF
 SUCH MONIES CREDITED MAY BE TRANSFERRED TO A STATE UNIVERSITY ACCOUNT AS
 REQUESTED  BY  THE  STATE  UNIVERSITY CHANCELLOR OR HIS OR HER DESIGNEE.
 MONIES TO ESTABLISH RESERVES FOR LONG-TERM EXPENSES OF STATE  UNIVERSITY
 HEALTH  CARE  FACILITIES  AND  TO  FULFILL  OBLIGATIONS REQUIRED FOR ANY
 CONTRACT FOR HEALTH CARE SERVICES  AUTHORIZED  PURSUANT  TO  SUBDIVISION
 SIXTEEN  OF SECTION THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW MAY BE
 DESIGNATED BY THE STATE UNIVERSITY HEALTH CARE FACILITY AT  STONY  BROOK
 AS  A RESERVE AND TRANSFERRED TO A SEPARATE CONTRACTUAL RESERVE ACCOUNT.
 THE AMOUNTS IN SUCH ACCOUNTS SHALL BE AVAILABLE FOR  USE  IN  ACCORDANCE
 WITH  PARAGRAPH  B  OF SUBDIVISION FOUR AND SUBDIVISION EIGHT OF SECTION
 THREE HUNDRED FIFTY-FIVE OF THE EDUCATION  LAW.  MONIES  SHALL  ONLY  BE
 EXPENDED  FROM  THE  STATE  UNIVERSITY  OF  NEW YORK STONY BROOK MEDICAL
 HOSPITAL OPERATING ACCOUNT AND THE CONTRACTUAL RESERVE ACCOUNT  PURSUANT
 TO  APPROPRIATION.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER,
 THE EDUCATION LAW OR ANY OTHER LAW TO THE CONTRARY,  SUCH  APPROPRIATION
 SHALL  REMAIN  IN FULL FORCE AND EFFECT FOR TWO YEARS FROM THE EFFECTIVE
 DATE OF THE APPROPRIATION  ACT  MAKING  SUCH  APPROPRIATION.  MONIES  SO
 TRANSFERRED  MAY  BE  RETURNED TO THE UNIVERSITY OF NEW YORK STONY BROOK
 MEDICAL HOSPITAL OPERATING ACCOUNT; PROVIDED,  HOWEVER,  THAT  FUNDS  IN
 SUCH  CONTRACTUAL  RESERVE  ACCOUNT MUST BE SUFFICIENT TO MEET THE OBLI-
 GATIONS OF ALL SUCH CONTRACTS.
   3. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH C OF  SUBDIVISION  FOUR
 OF  SECTION  THREE  HUNDRED FIFTY-FIVE OF THE EDUCATION LAW, OR ANY LAW,
 RULE OR REGULATION TO THE CONTRARY,  AND  EXCEPT  AS  OUTLINED  IN  THIS
 SECTION,  SUCH  FUNDS  CONTAINED WITHIN THE STATE UNIVERSITY OF NEW YORK
 STONY BROOK MEDICAL HOSPITAL OPERATING ACCOUNT SHALL BE  FOR  THE  OPER-
 ATIONS OF THE STATE UNIVERSITY HEALTH CARE FACILITY AT STONY BROOK ALONE
 AND  MAY  NOT BE SUPPLEMENTED BY MONIES CONTAINED WITHIN ANY OTHER STATE
 UNIVERSITY ACCOUNT.
   § 2. Subdivision 8-a of section 355 of the education law  is  REPEALED
 and a new subdivision 8-a is added to read as follows:

 S. 2211--A                          4
 
   8-A. THE DIRECTOR OF THE BUDGET, IN CONSULTATION WITH THE COMMISSIONER
 OF  HEALTH  AND  CHANCELLOR  OF  THE STATE UNIVERSITY OF NEW YORK, SHALL
 DEVELOP A METHODOLOGY FOR THE APPORTIONMENT OF GENERAL FUND MONIES TO BE
 ALLOCATED ANNUALLY TO EACH OF THE STATE UNIVERSITY OF  NEW  YORK  HEALTH
 CARE FACILITIES TO REFLECT ONGOING SUPPORT FOR COSTS ATTRIBUTABLE TO THE
 STATE  AGENCY STATUS OF SUCH HEALTH CARE FACILITIES.  IN DEVELOPING SUCH
 METHODOLOGY, THE DIRECTOR OF THE BUDGET SHALL  TAKE  INTO  CONSIDERATION
 EACH FACILITY'S SHARE OF LABOR COSTS, INCLUDING FRINGE BENEFIT COSTS, AS
 WELL AS ANY APPLICABLE HOSPITAL INDUSTRY NORMS, WHICH SHALL INCLUDE, BUT
 NOT  BE  LIMITED  TO,  THE NUMBER OF FULL-TIME EQUIVALENT EMPLOYEES, AND
 OUTPATIENT AND INPATIENT VOLUME. SUCH METHODOLOGY SHALL BE SUBMITTED  TO
 THE  TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE
 CHAIR OF THE SENATE FINANCE COMMITTEE, THE CHAIR OF  THE  ASSEMBLY  WAYS
 AND  MEANS  COMMITTEE  AND  THE CHAIRS OF THE SENATE AND ASSEMBLY HIGHER
 EDUCATION COMMITTEES NO LATER THAN THIRTY DAYS PRIOR TO  THE  ALLOCATION
 OF MONIES TO EACH HEALTH CARE FACILITY.
   §  3.  Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law,  the  state  comptroller  is  hereby
 authorized and directed to transfer, upon request of the director of the
 budget,  the  outstanding  balance  of the state university income fund,
 state university hospitals income reimbursable account  (22656)  to  the
 state university of New York upstate medical hospital operating account,
 the  state  university  of New York downstate medical hospital operating
 account and the state university of New York Stony Brook medical  hospi-
 tal  operating account. Such transfer shall be done in direct proportion
 to the share of the revenues received by each  hospital  for  the  state
 university fiscal year ending on June 30, 2018.
   §  4.  This  act shall take effect immediately, provided that sections
 two and three of this act shall take effect on the thirtieth  day  after
 it shall have become a law.